Trump Pressures Fed to Cut Rates, Citing Energy Prices and Inflation Goals

President Trump argues for immediate rate cuts, claiming a better understanding of monetary policy, while the Federal Reserve signals caution due to persistent inflation and economic growth.

President Trump has publicly called on the Federal Reserve to lower interest rates immediately, linking the move to declining energy prices and his administration's inflation strategy.
The Federal Reserve has already reduced rates by 1% over the past year but remains hesitant to cut further due to inflation still exceeding its 2% target and strong economic growth indicators.
Trump has emphasized energy production and lower oil prices as key mechanisms to combat inflation, though experts note energy costs make up a small portion of overall consumer spending.
Economists and Federal Reserve officials express concerns that Trump's policies, including tax cuts, tariffs, and immigration measures, could drive inflation higher, complicating monetary policy decisions.
The Fed's independence and credibility are being tested as it balances data-driven decision-making with political pressure from the president ahead of its upcoming policy meeting next week.